Equities market halts two-month losing streak as investors gain N417bn in April

Investors in the stock market gained N417 billion in April following the reallocation of assets to equities — ending two-month losing streak.

The gain was buoyed by the release of first-quarter (Q1 2020) results of listed companies.

In April, market capitalisation of all listed equities rose to N20.847 trillion from N20.429 trillion at the beginning of the month.

The equities market had recorded a massive increase in January, 2021, rising by 5.37 percent  after investors gained N1.131 trillion on the back of low yields in Treasury Bills (TBs).

However, in February, the market went on a full reverse, wiping out all the gains recorded in January following a shift in investors’ preference to fixed income in response to the uptick in TBs yields. Investors lost whopping N1.38 trillion or 6.16 percent to the bearish market during the month.

The market sustained the downward tempo in March, though moderately by 0.33 percent as yields in fixed income continued to trend upwards.

In April, the all-share index (NGX ASI), a barometer used to measure the performance of listed equities, advanced by 789.29 points to close the month at 39,834.42 compared with 39,045.13 recorded in March.

Also, industrial goods sector led the gainers, rising by 3.06 percent, followed by the consumer goods sector with 2.83 percent increase, while the oil and gas sector advanced by 1.22 percent.

Royal Exchange Assurance emerged the best performing stock for April in percentage terms, growing by 89.29 percent to close at 58k per share against 28k recorded in March.

Linkage trailed with 41.87 percent to close at 85k in contrast with 60k posted in the comparative month.

Also, Japaul Gold came third with 36.36 percent growth to close at 60k against 44k achieved in March.

Conversely, NCR recorded the worst performing stock in percentage terms in April with a loss of 18.64 percent to close at N2.27 against N2.79 it opened with in March.

Unity Bank dipped 17.33 percent to close at 62k from 75k recorded in March.

Caverton also fell by 14.98 percent to close at N1.75 per share compared with N2.07 per share posted in March.

Market analyst expect a mixed trend and outlook in May. Just as the ongoing vaccination and economic recovery support market recovery in the midst of rising inflation and yields in fixed income space.